Miller Energy Resources Secures New Gas Sales Agreement

Miller Energy Resources, Inc. (the "Company" or "Miller")

, announced today that through its wholly-owned Alaskan operating subsidiary, Cook Inlet Energy, LLC ("CIE"), the Company has secured a new commercial gas sales agreement. The terms of the agreement allow for CIE to sell natural gas on a discretionary basis in amounts up to 10 Mmcf per day. The new agreement will remain in effect until the end of March 2014 and replaces the prior gas sales agreement that the Company announced last month. The remaining terms of the agreement are confidential and the Company is in negotiation for a long-term agreement which it expects to have finalized by the end 2013. The Company also spudded its Olson Creek #1 well on June 25, 2013 employing its own drilling Rig-34. Plans involve drilling to a measured depth of 2,000 feet and setting the first string of 7-5/8" casing followed by drilling to a final measured depth of 7,500 feet at which point the remaining 5 1/2" casing string will be set. The well will be logged, perforated and flow tested over the next 40 to 60 days. "We have always been excited about the opportunities offered to us by the Olson Creek prospect," said Scott M. Boruff, CEO of the Company. "We strongly believe that this new well will enhance our gas production in the Cook Inlet. The terms of new gas sales contract will also allow us to take immediate advantage of that production and provide the company with flexibility for growth." The Olson Creek prospect is northeast and on strike with the production from Aurora's Three Mile Creek Field. Other nearby fields include Beluga River (1.2 Tcf gas), Lewis River (21 Bcf gas), Pretty Creek (12 Bcf gas) and Lone Creek, each of which encountered numerous reservoirs within the objective section. Multiple prospective zones are present within the Olson Creek prospect area and the planned well will be situated to evaluate the structure. Upon success it is expected that 24 wells would be required to fully develop the field. Estimated potential for each well is up to 3.5 Bcf gas and the potential reserve size for the field is approximately 84 Bcf gas. CIE will also install a gas gathering pipeline to connect the field to the existing Cook Inlet gas transmission system.